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Uzbekistan Launches Besqala Mining Valley for Green Crypto Mining

According to The Block, Uzbekistan’s Karakalpakstan-wide mining zone aims to attract investment, create jobs and encourage renewable energy use with tax exemptions until 2035.

Fact Check
The claim is strongly supported by the official Uzbekistan legal text at https://lex.uz/ru/docs/8146414, which establishes the Besqala Mining Valley special mining zone in Karakalpakstan and explicitly permits energy from renewable sources and hydrogen power plants. The secondary report 'Uzbekistan opens state-backed crypto mining zone with tax breaks' matches the official decree and adds that tax incentives last until 2035. I do not rely on the X post for validation because it is not primary evidence. One nuance: the official source clearly shows establishment by presidential resolution in April 2026, so 'launches' is broadly accurate, while 2035-01-01 is the end date for incentives, not the event date.
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Summary

Uzbekistan will establish the Besqala Mining Valley in Karakalpakstan to promote crypto mining supported by renewable energy and economic development. The zone covers all of Karakalpakstan and is intended to attract investment, create jobs and encourage renewable energy use in mining operations. Mining income will be exempt from tax until 2035, while previously reported framework details include licensing by the National Agency for Perspective Projects, a 1% management fee, and permission for miners to sell mined crypto through local or overseas platforms with proceeds paid into domestic bank accounts.

Terms & Concepts
  • Crypto mining: The process of using computing power to validate blockchain transactions and earn newly issued cryptocurrency rewards.
  • Renewable energy: Energy generated from naturally replenishing sources, used in crypto mining to reduce reliance on higher-emission power.
  • Crypto exchange: A platform where users can buy, sell, or trade digital assets such as cryptocurrencies.